Is a regional third party possible in the US?

There are a lot of arguments about how a two-party system is the logical outcome of a first-past-the-post voting system. But, now that there are zero Republican representatives in the northeastern part of the US, would it make sense to try and form a Yankee Conservative Party, or something like that? A party of good old fashioned business-friendly, small-government, etc etc conservatives who argue that they’ll ally with the Democrats over culture-war crap but with the Republicans on economic issues, and who don’t even try to contest elections in the South?

Anyone think this could happen?